E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 24, 2016 Forecast

December E-mini NASDAQ-100 futures are expected to open sharply higher based on the pre-market trade. The index was trading firm, but spiked to the upside shortly before the opening after Federal Reserve Bank of St. Louis President James Bullard said low interest rates will likely be the norm during the next two to three years.

Technical Analysis

The main trend is down according to the daily swing chart, but today’s strong rally has put the index in a position to challenge the last main top at 4901.50. A move through this top will change the main trend to up. However, investors should note that today is the seventh day up from the 4754.50 main bottom, which puts the index in the window of time for a closing price reversal top.

We’ll probably know more about the strength of this current rally based on its reaction to the main top at 4901.50.

The main range is 4901.50 to 4754.50. Its 50% level or pivot comes in at 4828.00. This price is controlling the near-term direction of the market.

Forecast

Based on the current price at 4876.25, the direction of the NASDAQ-100 Index will be determined by trader reaction to the downtrending angle at 4881.50 and the downtrending angle at 4861.50.

We’re likely to start the cash market session on the strong side of the uptrending angle at 4866.50 so that’s good for the bulls. However, taking out 4881.50 will indicate the buying is getting stronger. This is the last potential resistance angle before the 4901.50 main top.

A sustained move under 4861.50 will signal the presence of sellers. The daily chart opens up to the downside under this angle with the next target the 50% level at 4828.00.

The market should have the momentum on the opening to attract more buying. This market could really explode to the upside if we can get investors to buy strength over the downtrending angle at 4881.50.